HYDROGEN FUEL AND THE PEOPLE OF THE PHILIPPINES

A SPECIAL REPORT
International Press Release

By: (name of proponent withheld)
Metro Manila, Philippines


HYDROGEN from Water was predicted by Jules Verne in 1874 to be the fuel of
the future. During World War II, Germany used V-2 Rocket Bombs propelled
by HYDROGEN. Now, Dr. Jacob Bigeleisen discovered that at room temperature
or under atmospheric condition, DEUTERIUM ATOMS are electrolyzed naturally
out of water in the form of HYDROGEN gas. This natural phenomenal process
needs no expensive electric power consuming electrolysis to artificially
separate HYDROGEN from OXYGEN in Water.

What is DEUTERIUM? Deuterium is HEAVY WATER or HYDROGEN WATER without
oxygen. This is obtained from the deep trenches of the World and the
World's largest DEPOSIT OF DEUTERIUM is IN THE PHILIPPINES - A big deposit
of 868 miles long, 52 miles at widest point, and 3 miles at deepest point,
replenished by nature 24 hours a day after Deuterium traveled more than
12,000 kilometers from Central America to the Philippines through the span
of the Pacific Ocean when Planet Earth turns on its axis from West to East
in unending perpetual motion.

USES OF DEUTERIUM

Deuterium is used in the production of (Hydrogen) Li-Hy Fuel now used in
Canada, America, Germany and some parts of Sweden to provide fuel for cars,
trucks, jet planes, etc. including solid Hydrogen for Spacecrafts
Challenger and Columbia. Deuterium can replace gasoline, LPG, LNG, Avgas,
etc. in powering all types of internal combustion engines. It does not
emit pollutants or any harmful carbon monoxide and does not cause any
environmental problems because it is in the water family as emissions are
nothing but water vapor or steam. Deuterium as Hydrogen Fuel can be used
for cooking, lighting, heating, and as Heavy Water fuel for Reactors in
electric power generation.

Why does Deuterium electrolyze out of water in the form of Hydrogen
Gas? It electrolyzes out of water in the form of Hydrogen gas because
Deuterium is CONCENTRATED HYDROGEN with element symbol, H2 (Hydrogen mass
of 2 as distinguished from H2O in Water) subjected to the pressure of water
mass at the ocean floor of about 10,000 psi or more because Deuterium
obtained from depths of more than 7,000 meters below sea level and at more
than 10,000 psi pressure causes the oxygen in water to disengage, separate
and escape naturally from hydrogen leaving only Hydrogen isotopes to
combine with other Hydrogen isotopes in forming Deuterium under
pressure. And Deuterium under pressure, when exposed to room temperature
or atmospheric condition, forms or electrolyzes naturally into Hydrogen
Gas, in the same manner that LPG (Liquefied Petroleum Gas) and LNG
(Liquefied Natural Gas) in LIQUID state transform into gas after fusion
process with air in the atmosphere the moment LPG or LNG tank valves are
turned on or opened. By taking out impurities from Deuterium, Li-Hy Fuel
is produced by special simple process at very, very low cost known to this
proponent and his associates. Cheap Hydrogen will reactivate all idled
Hydrogen Based Industries internationally affected by high petroleum costs,
and this will boost food, chemical, and metal industries worldwide.

PROPOSAL TO THE PHILIPPINE GOVERNMENT AND FOREIGN INVESTORS

Through intensive research and development on oceanographic data and
processes with foreign associates, the proponent discovered that
concentrated Hydrogen exists only about one centimeter thick in every 3,000
meters deep of water mass at the ocean floor. Because Deuterium more than
twice the weight of ordinary water, it sinks and in the process, OXYGEN
separates naturally from Hydrogen when the pressure becomes about 10,000
psi or more. The usual ocean floor depth ranges between 2,000 meters to
3,000 meters. With the Philippine Trench at 7,000 meters to 10,500 meters
deep, Deuterium is naturally trapped through the ages untapped by man
through this day, replenished by nature through the North Equatorial
Current Tidal Flow from more than 12,000 kilometers away in Central America
to the Philippines hitting the Philippine Trench DIRECTLY PERPENDICULAR -
The one and only Trench with the widest and longest resource flow of
Deuterium in the whole world!

This proponent presented in March 1986 the Deuterium Project to the
Philippines and American Governments in his desire to help the People of
the Philippines and its Government, by introducing an internationally
accepted production-sharing scheme. This is the 40/40/20
production-sharing scheme. 40% of daily production revenue goes to the
Government, 40% goes to the Investors, and 20% is retained or set aside to
cover the cost of security, operation, management, administration, salaries
and wages, materials, supplies, repairs and maintenance, and other
operation costs.

The Philippine Government would not put in any investment funds but the
following:

1) Land and Export Processing Zone or EPSA;
2) Tax and Duty Free Operation, and
3) Security of Investments with Government Guarantee

There are several lands belonging to the Government along the areas of
proposed sites. The Law on Export Processing Zone can be used to declare
selected sites as EPSA, the Law providing a built-in Tax and Duty Free
arrangements with the Government. The Security of Investments are provided
for by the Omnibus Investment Act, the Investments Law, the Constitution of
the Philippines (past, present, and proposed) guarantee the Constitutional
Rights to Properties and Due Process, including just compensation. The
Government MUST GUARANTEE enforcement of these laws.

Foreign Investors have been informed that all funds would have to be
provided by them on the following items:

1) Funds for Research and Development;
2) Mobilization Costs and Recruitment;
3) Engineering, Development and Construction Costs;
4) Equipment, Pumping, Storage, Loading facilities and other industrial
project costs

The 20% production sharing revenue would be set aside and be used for
Security, Management, Administration, salaries and wages, materials,
supplies, transportation and housing personnel, food, medical supplies, and
other operational costs in order to preserve and not disturb the 40%
production revenue sharing for each of the Government, and the Investors'
shares. By maintaining this production revenue sharing ratio, future
disagreements and irritants are avoided. A built-in protection for the
Government and the Investors, which is strongly recommended by the
proponent on the basis of the ARAMCO experience.

WHO BUYS OR SELLS ALL DEUTERIUM PRODUCED?

Using the ARAMCO experience since the 1950s for rapid development, the
foreign investors shall have the first option to buy or sell the daily
production of Deuterium at preset price of US$7.00 per barrel. This would
give a marketable Gas Station Retail Price of only Php0.90 or US$0.45 per
liter or US$0.15 per gallon of Li-Hy Fuel from Deuterium. In effect, the
investors buy, after discounting their 40% sharing or at 40% less, at only
US$4.20 per barrel giving them more flexibility on their international
market pricing policies.

This Hydrogen Fuel gives twice the mileage economy of gasoline or LPG/LNG
fed cars. Old gasoline fed cars can be converted to Li-Hy Fuel use by
utilizing the same conversion kits used in converting gasoline fed engines
to LPG/LNG fed units. Brand new cars have been made to use LPG/LNG fuel
more than ten years ago and the same car engines can use Li-Hy Fuel.

In Japan and Canada, there are about 78% brand new cars running on LNG or
LPG. The same brand new units can use Li-Hy Fuel, which is more economical
fuel than any other available in the international market today. Hydrogen
Fuel does not emit any pollutants or harmful carbon monoxide but steam or
water vapor.

PROPONENT AND ASSOCIATED INVESTORS

This proponent conducted intensive studies on Research, Development,
Philippine Investments Law, Corporation Code, organization, security,
management, administration, operation, marketing, including the
breakthrough in Pump Technology with his associates. This breakthrough in
Pump Technology will use Hydrodynamic Power in pumping Deuterium from more
than 7,000 meters below sea level.

The U.S. Government sent an Investment Mission last June 1986 to the
Philippines and initial conferences were held with Overseas Private
Investment Corporation (OPIC) of Washington, D.C., USA with the
participation of Government Officials and private businessmen in Manila. A
meeting with Trade and Industry Minister Jose Concepcion was held during
President Corazon C. Aquino's trip to USA last September 1986. Another
meeting is scheduled this December 1986 in Washington D.C. with Deputy
Minister Tomas Alcantara. Major U.S. investors are expected to attend and
participate. OPIC Mission has scheduled a series of February 1987
conferences in Manila with Deuterium Project as the banner line of
publication agenda. International Investors are expected to attend the
technical presentation conferences in Manila in 1987.

The Japanese Group of Investors is composed of the top eight industrial
companies, which will form a consortium to undertake a 4 million barrels
capacity per day of Deuterium production.

A Saudi Group visited the Philippines in September and October 1986 and was
interested in a 2 million barrels daily production capacity of Deuterium.

With the two top U.S. oil companies interested in a 6 million barrels
capacity, Japanese investors in a 4 million barrels capacity, and the Saudi
Group in a 2 million barrels daily production capacity, the total
prospective investors inquiries so far received is 12 million barrels daily
production. The Philippines can supply all the requirements of the WHOLE
WORLD in Deuterium as Hydrogen Fuel and as Hydrogen for food, chemical, and
metal industries worldwide.

TRANSFER OF HIGH TECHNOLOGY

Hydrogen from Deuterium is the fuel of the future available in the
Philippines. This needs the transfer of high technology in pumping and
refining processes. The proponent has developed with an American Pump
Engineer a new breakthrough in pump technology using HYDRODYNAMIC POWER by
employing the RAM JET SUCTION TECHNOLOGY in the same manner that Jet Planes
use the RAM JET PROPULSION to propel heavy loaded jet planes
today. Storage system will use the underground Tunnel Type Tanks in lieu
of the surface tank farm. Loading System will use the same types as those
for LPG and LNG Systems.

RULE OF THUMB INVESTMENTS

Subject to the refinements of cost data, project line items and other
factors, the Rule of Thumb Investment Estimates is about US$200,000,000.00
for every 1,000,000 barrels daily production capacity - a very much lower
Investment/Capacity ratio than Petroleum production. At 12 million barrels
per day capacity, the estimated total investment is US$2,400,000,000.00 or
US$2.4 billion - the single largest industrial investment in the Philippines.

EMPLOYMENT OPPORTUNITIES

As the Feasibility Study on the Project has been started, this proponent
estimates that the Deuterium Project's combined production capacities will
employ no less than 350,000 personnel of international pay rates and
allowances for unskilled, semi-skilled, technical, and professional levels
from the Philippines. Less than 2,000 foreign nationals will also be
employed on the transfer of technology. The type of operation is the same
as those in the Middle East petroleum production facilities, with the same
pay rates so as not to disturb international energy pricing and economy of
costs.

BENEFITS TO THE GOVERNMENT AND THE FILIPINO PEOPLE

At 12 million barrels per day capacity priced at US$7.00 per barrel, this
is US$84 million per day or US$30.66 billion per year, enough to wipe out
all existing foreign debts of the Government in one year, revenue-wise in
Foreign Exchange.

Public works, private construction, economic and financial booms are
expected to happen in the Philippines in the same manner as those which
happened in the Middle East and financial centers of the world from 1974 to
1984, with everybody earning their respective comfortable livelihood, while
pricing basic prime necessities at reasonable and affordable levels.

Deuterium and Hydrogen Fuel is the final and lasting hope of the Filipino
People and the Government to be great again. This untapped source of
energy supply will make the Philippines one of the richest countries of the
world.

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